Definition
A DESCRIPTION in real estate is a detailed, formal depiction of the dimensions, boundary lines, and location of a property. This is often included in varying stages of property documentation such as DEEDS, LEASES, SALES CONTRACTS, and MORTGAGE contracts. There are specific methods for legal descriptions to ensure precision and clarity, including GOVERNMENT RECTANGULAR SURVEY, LOT AND BLOCK, and METES AND BOUNDS. In addition, these descriptions can be organized in a PLAT format for ease of reference.
Examples
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Sales Contract Execution:
- A sales contract is signed for residential property. The contract contains a description that simply includes the street address.
- At closing, the deed incorporates a LOT AND BLOCK description based on a PLAT of the property. This ensures that the legal description aligns with how the land is designated officially.
-
Lease Agreement:
- In a commercial lease, the description might include METES AND BOUNDS, defining the boundaries based on physical markers and measurements.
- This ensures that the leased space is precisely known and reduces disputes related to boundary lines.
Frequently Asked Questions (FAQs)
What is the importance of a property description in real estate transactions?
A property description is crucial for establishing the exact boundaries and dimensions of a property, ensuring legal clarity and preventing disputes.
How is a METES AND BOUNDS description made?
METES AND BOUNDS descriptions outline a property’s boundaries using measurements (metes) and geographical features or designated points (bounds).
Can a street address serve as a legal property description?
While a street address provides location information, it is often not sufficient as a legal description since it lacks precise boundaries. Legal transactions require more detailed descriptions such as LOT AND BLOCK or METES AND BOUNDS.
What is a PLAT?
A PLAT is a detailed map outlining property boundaries and features, often used in conjunction with LOT AND BLOCK descriptions to provide a clear view of subdivisions and individual lots.
Why are different methods of property description used?
Different methods cater to different types of properties and contexts, ensuring that each description method suits the property’s nature, whether it’s a large rural tract (METES AND BOUNDS) or an urban lot (LOT AND BLOCK).
Related Terms with Definitions
- Government Rectangular Survey: A method of land description standardized by the federal government, using a grid system of rectangular parcels.
- Lot and Block: A method of property description using the specific lot number and block number within a PLAT filed with the local government.
- Metes and Bounds: A more complex method of property description that uses specific physical features and measurements to define boundaries.
- Plat: A detailed, scaled map that shows the divisions of a piece of land, including lots, streets, and other features.
- Deed: A legal document that grants ownership of property.
- Lease: A contract granting use or occupation of property during a specified period of time in exchange for rent.
- Sales Contract: A legal agreement to purchase real estate, involving terms and conditions agreed upon by both buyer and seller.
- Mortgage Contract: A legal document outlining the terms of a loan secured by the property itself.
Online Resources
References
- Title 26: Internal Revenue Service (Plats and Legal Descriptions).
- Real Estate Principles, Ling & Archer.
- Modern Real Estate Practice in Canada.
Suggested Books for Further Studies
- “Real Estate Principles: A Value Approach” by David M. Ling and Wayne R. Archer
- “Modern Real Estate Practice” by Fillmore W. Galaty, Wellington J. Allaway, and Robert C. Kyle
- “The Complete Guide to Real Estate Finance for Investment Properties” by Steve Berges
Real Estate Basics: DESCRIPTION Fundamentals Quiz
### What is included in a legal property description?
- [ ] Just the street address
- [ ] Only the postal code
- [x] Detailed dimensions and boundary definitions
- [ ] Owner's personal information
> **Explanation:** A legal property description must include detailed dimensions and boundary definitions to precisely identify the property.
### Which method uses physical markers and measurements in property descriptions?
- [x] Metes and Bounds
- [ ] Lot and Block
- [ ] Government Rectangular Survey
- [ ] Street Address
> **Explanation:** The METES AND BOUNDS method uses physical markers and measurements to outline property boundaries.
### What is the purpose of a plat in property descriptions?
- [ ] Serves as the only legal description needed
- [x] Provides a detailed map of divided land showing lots and streets
- [ ] Replaces the need for a deed
- [ ] Maps only residential properties
> **Explanation:** A PLAT is a detailed map that indicates divisions of land, lots, streets, and other features, often used with LOT AND BLOCK descriptions.
### Which property description method is standardized and uses a grid system?
- [ ] Lot and Block
- [x] Government Rectangular Survey
- [ ] Metes and Bounds
- [ ] Street Address
> **Explanation:** The Government Rectangular Survey is a standardized method that uses a grid system for describing land parcels.
### Can a street address legally define a property?
- [x] No
- [ ] Yes, it's sufficient
- [ ] Yes, combined with postal code
- [ ] It varies by state
> **Explanation:** A street address alone cannot legally define a property because it lacks the precision needed for boundaries and dimensions.
### What is a requirement for a property description in a sales contract?
- [x] It must include a legal description of the property.
- [ ] It only needs the owner's signature.
- [ ] Just the type of property suffices.
- [ ] Listing price inclusion is mandatory only.
> **Explanation:** A property description in a sales contract must include a legal description to ensure precise identification.
### Why is metes and bounds used in rural properties?
- [x] Because it can describe large and irregular land areas using physical features.
- [ ] It is required by federal law.
- [ ] Only method available outside cities.
- [ ] It doesn't need surveying.
> **Explanation:** Metes and Bounds is often used for rural properties as it can describe large, irregular areas using physical markers and precise measurements.
### What does the term "lot and block" refer to in property descriptions?
- [ ] Specific zoning codes
- [ ] Street junction coordinates
- [x] Subdivision identification method listing lot and block numbers
- [ ] Government-imposed descriptions
> **Explanation:** “Lot and block” refers to a method identifying properties within subdivisions using specific lot numbers and block numbers as documented in plats.
### What is the utility of plats in urban properties?
- [x] They provide a clear, organized layout of subdivisions and lots.
- [ ] Plats manage municipal services.
- [ ] Reinforce federal land use policy.
- [ ] Record ownership changes only.
> **Explanation:** Plats offer a clear and organized map of subdivisions and lots, aiding easy reference and development in urban areas.
### In which governmental office are plats usually filed?
- [x] Local County Recorder's Office
- [ ] Federal Property Management Office
- [ ] State Tax Authority
- [ ] City Zoning Department
> **Explanation:** Plats are usually filed with the Local County Recorder's Office for public records, providing official documentation and land descriptions.
